In a year marked by executive restructuring, Celsius Holdings Inc. continued its run of consistent growth in the energy category, announcing a 54 percent increase in year-over-year revenue in its Q3 earnings report released on Thursday.
“Our performance in the third quarter reflects growing demand and the continued, solid execution of our strategy to increase placements for our products where our customers live, work and play, through a diversity of channels and geographic locations, including broadening our retail footprint in high-profile retailers and convenience stores such as Target, CVS and Wawa, as well as the continuation of our highly anticipated launch in China with our partner Qifeng Food,” said John Fieldly, President and CEO, in the announcement.
The company, which markets three lines of fitness drinks under the CELSIUS brand name, saw a 92 percent increase in North American domestic revenue ($11.4 million, up from $5.9 million in 2017) drive much of its growth in the quarter. International revenue increased 7 percent to $5.2 million with gains in Asia helping to offset declines in Europe. Gross profit rose 47 percent to $6.9 million, while net loss to common stockholders was $4.2 million.
In the U.S., the brand has expanded its retail presence nationwide into Target and CVS, and has also secured cold vault placement in more than 590 C-stores and has been added as an option in more than 5,000 vending locations.
Fieldly, who previously served as CFO prior to taking over the president and CEO positions from Gerry David last year, added that the brand has focused on developing a business infrastructure in China to expand its international sales and is looking to partner with strategic partners in Asia to better hit on fitness and wellness trends abroad.
“Demand is strong and we are capitalizing on today’s health and wellness trends, consumers globally are adopting CELSIUS to be part of their healthy active lifestyle,” he said. “The Asia market demonstrated continued new penetration and re-orders with now over 33,000 locations. With our investment in the region to date, we have established an infrastructure, including distribution, sales, marketing and operational logistics that will support exponential growth as brand awareness increases and we continue to strengthen our foothold in the region.”
The quarterly results do not reflect some of the recent changes to the company’s leadership team. Last month, EVP of sales and marketing Vanessa Walker left the company after a nearly three year tenure where she helped reposition the brand by targeting natural channel consumers and developing 16 oz. packaging to better compete with rival companies. Three days after her departure was announced, industry veteran Matt Kahn was named as the new EVP of marketing.
CELSIUS stock ended the day down by 2 percent at $3.92 per share.